Desrevisseau Inc., a manufacturing company, has provided the following data for

Question

Desrevisseau Inc., a manufacturing company, has provided the following data for the month of August. The balance in the Work in Process inventory account was $15,500 at the beginning of the month and $35,200 at the end of the month. During the month, the company incurred direct materials cost of $98,200 and direct labor cost of $61,000. The actual manufacturing overhead cost incurred was $62,000. The manufacturing overhead cost applied to jobs was $65,000. The cost of goods manufactured for August was:

Explanation / Answer

Total manufacturing cost incurred during the month =Direct material +labor +applied overhead

                                                                                    = 98200 + 61000 + 65000

                                                                                    = 224200

Cost of goods manufactured = WIP Beginning + Cost incurred -WIP end

                                                  = 15500 +224200 - 35200

                                                  = 204500

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